Chapter Three: Understanding Financial Intelligence

It's good to have money and the things money can buy, but it's good, too, to check up once in a while and make sure you haven't

lost the things that money can't buy.George Lorimer

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Chapter Goals

Learning• Take charge of your

financial decisions • Empower yourself through

money management by budgeting, saving, and investing

• Importance of your FICO score and how to build a solid credit report

Ability• Construct and use a budget • Make wise decisions

regarding credit cards, student loans, and financial aid

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Taking Control of Your Money

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Empowering Yourself with Delayed Gratification

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A Budget

An itemized summary of how you plan to spend your financial resources during a specified period of time

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Five Smart Money Moves

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(Fowles, 2011).

Job Benefits

• health insurance• life insurance• dental insurance• profit sharing programs• free parking• child care facilities• exercise facilities• others

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Tax Deductions

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Expenses

Fixed• Housing• Transportation

– Car payment– Gas– Insurance

• Utilities• Loans

Variable Expenses• Food• Medical/dental expenses• Car repairs/maintenance• Internet/phone• Entertainment• Clothing• Credit cards• Education• Other• Savings/investments• Day Care

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Student Loan Borrowing Tips

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Key Features about Student Loans

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Defaulting on Your Student Loan

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Building Your Credit History

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Evaluating Credit Cards

• Lowest permanent interest rate.

• Low or no annual fees.

• Avoid having too many cards.

• Understand credit terms and disclosure statements.

• Beware of low introductory rates.

• Make sure issuer reports to a credit agency.

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Managing Your Credit

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FICO Score

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When to Get a Free Copy of Credit Report

• Once every year.• If you have been denied

credit in the previous 60 days.

• If you have been denied employment or insurance in the previous 60 days.

• If you suspect someone has been fraudulently using your accounts or your identity.

• If you are unemployed and plan on applying for employment within the next 60 days.

• If you are on public assistance.

• When applying for a mortgage you can get a copy from your lender.

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How to Improve Your FICO Score

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Identify Theft

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Retirement Questions

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Paycheck Deductions

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Buying a Car

• Insert photo 3.7 from page 121

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Chapter Reflections

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